RBI takes BIG step, to reissue govt securities worth Rs 270000000000, check here to know key details

The Centre has announced the sale (re-issue) of government securities totalling Rs 27,000 crore, according to information provided by Reserve Bank of India (RBI).

The auction will be split into two tranches of Rs 15,000 crore at 6.75 per cent Government Security (GS) maturing in 2029, and Rs 12,000 crore at 7.09 per cent GS maturing in 2054, the Finance Ministry notification said.

Additionally, the Centre will have the option to retain subscriptions of up to Rs 2,000 crore against the above securities.

A "re-issue" means the RBI is selling more of a bond that is already available in the securities market. This move is part of the government's regular borrowing program.

The auction will be conducted by the Reserve Bank of India, and the bids for the auction should be submitted in electronic format on the Reserve Bank of India Care Banking Solution (E Kuber) system on June 20, 2025.

"The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m."

The result of the auction will be placed on the Reserve Bank of India on its website (www.rbi.org.in) on June 20, 2025 and the successful bidder will have to make payment on June 23, 2025 i.e. the date of re-issue.

Furthermore, Interest will accrue on the nominal value of the Securities from the date of original issue or last coupon payment will be paid off half yearly. The Securities will be repaid at par on the date of maturity.

Earlier this month, the Reserve Bank of India also announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore. The two securities were re-issued at 6.92 per cent Government Security (GS) maturing on November 18, 2039, and the 6.90 per cent GS maturing on April 15, 2065. Each of these bonds will be issued for Rs 16,000 crore.